TIGA, the trade association representing the
UK games industry, said today that more UK games developers could unlock the
potential of the casual games market with the right investment and commercial
approach. New research commissioned by TIGA for the exclusive use of TIGA
members profiles key components of the casual online games market, a sector that
has grown rapidly in the last three years while the retail market has contracted.

The analysis of the casual online games sector and the wider UK
developer market has been carried out by independent games research specialist Games
Investor Consulting and by published by TIGA in Casual Online Games (TIGA, 2012).

The report found that the
fastest-growing casual online games market is games for web-based social
networks with a value of $2bn in the west in 2011, a 100% increase over 2010. Despite
this, just 24 UK games companies were making social network games last year.
They employed 350 development staff and contributed £33m to UK GDP. This
contrasts with:

24 companies making MMOGs and
virtual worlds in the UK with 700 staff, contributing £71 million to UK Gross
Domestic Product.

102 British games companies are making browser
and download-based casual online PC games in the UK. They released over 600
titles in 2011, employed nearly 700 development staff and contributed £70m to
UK GDP in 2011.

In
addition to providing market size and UK developer contribution date, the report
highlighted market demographics, business models, leading companies and
detailed a range of threats and
opportunities for UK developers such as:

Developers should consider
targeting fast growing sub-sets of the markets such as hard-core social network
games players and non English-speaking territories.

Developers integrating social and
community features and new commercial models such as microtransactions
typically demonstrate stronger growth potential.

International competition from
cheaper development is threatening UK developers of casual PC games.

TIGA’s
Casual Games Group is working to boost UK developers and digital publishers in
the casual online video game sector by negotiating exclusive discounts for TIGA
members and sharing best practice at networking events.

The TIGA Casual Games
Meet Up in London on January 27th attracted over 100 leading figures
in the industry to share knowledge and hear from a range of speakers.

TIGA is also campaigning for measures to improve the availability
of finance for UK game developers to enable them to invest in the fast-growing
areas of the industry. TIGA’s proposals include:

a well-targeted tax break for games
production, with a higher level of tax relief for small studios, in order
to reduce the cost of game development and to enable the UK video games
industry to compete on a level playing field.

a Creative Content Fund to provide
match funding on a pound for pound basis up to a maximum of £100,000 in
order to improve access to finance for small studios.

extending the scope of the Small
Firms R&D Tax Credit to include the costs of IP protection, design
costs and premises costs.

providing tax relief for
expenditure on workforce development in small studios to address skill
deficiencies.

TIGA believes that the adoption of these measures will enable the
UK to achieve gains in the casual online video games sector as they will
provide developers with greater resources to invest and to grow their
businesses in this expanding market.

TIGA CEO Dr Richard Wilson said:“This research shows that while British game developers are
engaged in MMOGs, social network and casual games, there is significant scope
for growth. TIGA is committed to assisting developers and digital publishers
realise this potential through our Casual Games Group, which is helping to
share knowledge and secure exclusive financial savings for TIGA members.

Additionally, TIGA will continue to campaign at the national level for the
introduction of measures to enable start-ups and other studios to improve
access to finance and so make greater investments in the growing areas of the
videogames market.”

Notes to
editors:

About TIGA:

TIGA is the trade association representing the UK’s games industry. The
majority of our members are either independent games developers or in-house
publisher owned developers. We also have games publishers, outsourcing
companies, technology
businesses and universities amongst our membership. TIGA won 10 business awards and was
nominated a finalist for 9 other awards during 2010 and 2011. In 2010 TIGA won two business awards including
‘Trade Association of the Year’ from the Trade Association Forum.

In 2011, TIGA
won eight business awards including ‘Trade Association of the Year’ from the
Trade Association Forum, ‘Outstanding Organisation’ from the Chartered
Management Institute and two Global Business Excellence Awards, including
‘Outstanding Marketing Campaign’.
Richard Wilson won the ‘Leadership Award’ from the Trade Association
Forum and the ‘Outstanding Leader’ award from the Chartered Management
Institute.

TIGA is an Investors in People organisation.

TIGA's vision is to
make the UK the best place in the world to do games business. We focus on
three sets of activities: political representation, generating media coverage
and developing services that enhance the competitiveness of our members.
This means that TIGA members are effectively represented in the corridors of
power, their voice is heard in the media and they receive benefits that make a
material difference to their businesses, including a reduction in costs and
improved commercial opportunities.

Games
Investor Consulting is a unique provider of specialist games research,
corporate finance and strategic management consultancy to over
80 games, media, government and finance clients to define precisely where to
invest in and how to engage with the games industry.

Since 2003, GIC has
provided commercial assessments of over 60 titles as well as consultancy
services (such as marketing, monetisation and distribution optimisation) to
over 40 companies such as Jagex, Eutechnyx, Ideaworks3D and eeGeo. GIC offers
discounted commercial check-up services to TIGA members.